Get Rich by Selling Gold during Covid-19

Unless you have been living under a rock, you may have seen the quick rise of gold rate price globally and in India. Sure, even in between it had its ups and downs, but right now it is rallying hard. For the 9th straight day, MCX futures market is seeing a record high. The demand for gold is at an all-time historic high.

This is something seldom seen before. If you want to get some immediate cash, why not sell off the gold which is lying fallow at home anyways? Why not use something which you have not used nor have any plans of using? Right now the money you can get in return for the gold you sell can be considerable. You can get Rs. 52,846 per 10 grams, and that price is steadily rising.

However, just wanting to sell gold is the easy thing. Actually selling it is tough. But here is our advice on how you should go on to sell your gold.

Documents you need for selling gold

Perhaps you thought that you won’t need any documents while selling. That is not the case, although you won’t need to show a bunch of documents either. All you need to show are your PAN card, your Aadhar card, and your purchase bill of your gold if you have it. 

 When you undertake to show that the gold actually belongs to you, there is a decrease in chance to sell stolen gold. 

In an ideal scenario, if you are selling gold, you should go to the same jeweler from whom who bought the gold originally. In case you do not have that option anymore, go for a reputed jeweler instead. In both cases, you’ll get a fair deal.

Items you can sell are gold coins, gold ornaments, and gold bars that you have purchased from other jewelers. It is even better to get a hallmark certificate, but in case you do not have it, have your gold machine-tested for purity.

Gold purity

If you fear about the purity of your gold, just get it tested at the designated centers in cities. This will give you a bigger chance of getting the best price for your items. Besides, you can also approach NBFCs and gold loan companies. These offer doorstep service which is so useful during the current lockdown situation.

Taxation of non-physical and physical gold if you sell

 If you sell physical gold, there is a short-term capital gains tax if you have held the said gold for one year. In this case, the gain is added to your income tax and you are taxed according to your slab. If you have held the gold for three years, there is 20% tax for LTCG after indexing. For non-physical gold like ETFs and digital gold, the tax treatment is similar, except for SGBs.

For SGBs, the interest income is charged under your Income Tax head income from other sources. There is no TDS or TCS implication. However, no capital gains tax is levied for redemption of SGBs after maturity.